Friday, June 11, 2010

EPF members' investment withdrawals up 43% to RM911m

KUALA LUMPUR: The Employees Provident Fund's (EPF) members' investment withdrawals rose 43.26% in the first quarter of 2010 (1Q10) to RM911.15 million (4Q09: RM896.66 million) from RM636.01 million in 1Q09.

In a statement on Thursday, June 10, EPF said the total applications approved under this withdrawal rose to 113,809 (4Q09: 114,375) from 87,420 a year earlier.

"The increase in withdrawals for investments is in tandem with the recovery in the domestic economy that began in the third quarter of 2009 and has since continued to gain momentum," said EPF CEO Tan Sri Azlan Zainol.

The increase was also attributed to the rise in the number of members who are eligible for investment withdrawals.

In 1Q10, the EPF recorded a 52.8% increase in applications from members who had opted for Flexible 55 Withdrawals, in which a total of 14,869 applications (4Q09: 11,929) were received compared with 9,731 a year earlier, with the amount withdrawn rising 26.05% to RM637.73 million (4Q09: RM454.12 million) from RM505.94 million a year earlier.

Azlan said priority towards prudent investing was reflected in the increasing number of retirees who had opted for Flexible 55 Withdrawals to stretch the value of their retirement savings as opposed to lump sum withdrawal.

There was a 1.99% increase in approved applications for lump sum withdrawal to 36,349 applications (4Q09: 30,120) from 35,640 a year earlier, with the amount withdrawn growing a marginal 0.7% to RM1,632.52 million (4Q09: RM1,235.52 million) from RM1,621.15 million a year earlier.

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